Back in April we explained to a mostly innocent community what a CDO is and how'd it work. The market at that time wasn't quite mature enough to actually implement one, so we let the matter lay for a while (some other people tried to implement what they understood of the text, resulting in varying degrees of failure).

Eventually we introduced one in August. Here's the original description of that issue :

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MPCD.x is a tranched CDO composed of the following assets :

i. 500 BTC to be invested in MPOE bonds starting the 1st of September for an asking rate of 4.99999999% a month (MPOE pays not on calendar months but on last-Friday-of-each-month) ;
ii. 500 BTC invested with Patrick Harnett's 1% a week compounding bond offering (the line PsHCai6pF2UH1475 500.9815 in the most recent stats update reflects this investment) ;
iii. 100 BTC invested with usagi's NYAN.A asset.

Each tranche will consist of shares nominally worth 0.001 BTC, so 350`000 shares for MPCD.A and MPCD.C, and 400`000 shares for MPCD.B.

This asset is created today, 15th of August 2012, will pay dividends on the 1st of each subsequent month for three months (that is, 1st of September, 1st of October, 1st of November) and then dissolve on the 1st of November. On each of the three dividend dates the exact sums quoted above will pe paid. On the last dividend date, all the remainder capital will be paid out, as follows : 350 BTC to MPCD.A holders. If less than 350 BTC capital remains the payment will be pro-rated (each holder gets his (shares / total shares) * remainder capital). Then, 400 BTC to MPCD.B holders. If less than 400 BTC capital remains the payment will be pro-rated (each holder gets his (shares / total shares) * remainder capital). Then, 350 BTC to MPCD.C holders. If less than 350 BTC capital remains the payment will be pro-rated (each holder gets his (shares / total shares) * remainder capital).

The fund has a little head start (because the investment with Patrick Harnett is already ongoing) which I am generously donating to smooth things over. The NYAN.A investment will also be realised as soon as deposits confirm.

Please bear in mind that the MPCD.C asset implies significant risk, no matter how attractive the >9% monthly interest might look. In case anything whatsoever goes bust the .C capital is first in line to pay for it. Other than defaults in any of the assets such loss could occur by the MPOE bond failing to activate (if sufficient capital is offered at a lower than the quoted rate the bond will lay fallow).-----BEGIN PGP SIGNATURE-----
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